Renewed business confidence generates rise in office take-up
CITY centre office take-up in Leeds in the second quarter of 2013 almost doubled the five year average as optimism in regional markets continues to improve, according to the latest market analysis.
GVA’s The Big Nine report has found that an upturn in confidence, and recently a more stable economic position, has filtered into occupier business strategies.
Take-up in quarter two was almost twice the five-year quarterly average in Leeds at 203,145 sq ft.
The Big Nine reports that regional city centre take-up levels were 14% above the five-year quarterly average. Take-ups were also well above average in Birmingham and Bristol.
Matthew Tootell, director of offices at GVA in Leeds, said: “Leeds has seen a similar level of take-up in the first half of the year to the annual take-up over the previous four years.
“The large KPMG and Dart Group deals of Q1 have been followed by Yorkshire Building Society taking 76,000 sq ft at Highcross’ refurbished Broad Gate development, the largest deal in the city in 10 years.
“Capgemini have also recently taken 25,000 sq ft in the building.”
City centre and out of town take-up combined in the nine GVA regional office centres recorded 1,730,000 sq ft in deals for Q2, 7% above the five-year quarterly average. The city centre market made up 67% of this total and recorded take-up of 1,161,000 sq ft, 14% above the five-year quarterly average.
Unfortunately, in Q2 the out of town market dropped 5% below the quarterly average. Age Partnerships taking 18,269 sq ft at Thorpe Park was the third largest out-of-town deal in the quarter.
Carl Potter, national head of offices at GVA, added: “Our Q2 analysis of regional office take-up is encouraging. Sentiment is up on what was already a positive Q1. Take-up figures will continue to improve. However, the concern remains that demand for Grade A stock continues and supply is only very slowly being replenished in a limited number of cities – in some there remains no new development.
“Without speculative development, an ominous tipping point will present itself. Demand has already started to outstrip supply in some regional cities and this will be replicated in all of our cities just 18 months from now.”
